But, their mass-production business model won’t be right for everyone
This month, e-commerce giant Amazon.com broke the news that it will be joining the insurance industry. The venture comes in the form of a partnership with digital insurtech company, Next Insurance. Through the partnership, members of Amazon Business Prime will be able to obtain a small business insurance quote from Next Insurance. Members will also have the chance to purchase general liability, professional liability, workers’ compensation, commercial auto, and tools & equipment insurance from Next Insurance.
All of this can be done, Amazon promises, without speaking to an agent (or any other human for that matter).
It’s not surprising that Amazon has figured out a way to get into the insurance industry. InsurTech – the intersection of Insurance and Technology – is growing at breakneck speed, backed by billions of investment dollars. The real question is, however, does the insurance world truly want to become more like Amazon?
For some businesses, Amazon’s insurance model will do just fine. Amazon is banking on the fact that many small business owners are looking for quick, easy, and (let’s just say it) cheap ways to get their insurance! Amazon’s existing infrastructure allows them to provide a distribution channel to rapidly get a lot of insurance policies in the hands of a lot of businesses.
It might sound appealing to get quick quotes and bind coverage without needing anyone’s help. However, many business owners can attest, having no one involved can be much less of a benefit when claims happen and you’re trying to navigate the confusing and overwhelming world of business insurance alone.
This is why I am confident that the true role of the independent insurance agent isn’t going anywhere. At United Western Insurance Brokers, we love technology. We use dozens of different tools to make our employees’ and our clients’ lives easier through connection and automation. However, we also know that no technology can replace the decades of expertise we have accumulated through our work in the industry. No technology can truly listen to our clients’ fears and concerns and guide them through the most important decisions they will face in their businesses and lives.
So, while the online retail giant may get a lot of things right (who doesn’t love 2-day, 1-day, or same-day shipping?), when it comes to business insurance, we think the true “Prime” experience is having access to a team of people who know their stuff and have your back.
If you agree, we’d love to talk!